Arthur Hayes Anticipates a Spectacular Rise in Solana (SOL) Price in the Event of This Scenario
BitMEX founder, Arthur Hayes, has provided insights on Bitcoin’s potential rally in the face of challenges within the banking sector, specifically New York Community Bancorp ($NYCB). Hayes has connected the intricate relationship between traditional finance and cryptocurrencies, indicating potential effects on the value of Solana.
Is it a good time to invest in Solana? Let’s delve into the analyst’s optimistic outlook on the trajectory of Solana’s price.
A significant shift in investment focus has occurred, as Arthur Hayes, renowned for his accurate predictions, once again highlights Solana (SOL) as an exceptional investment during the altcoin season. This time, he foresees a remarkable surge in SOL’s price, linking it to a potential banking crisis.
By observing recent events in the U.S. banking sector, particularly the notable 40% decline in New York Community Bancorp’s stock, reminiscent of the banking crisis in March 2023, Hayes speculates that the Federal Reserve may inject liquidity, leading to a widespread market rally, particularly in the cryptocurrency field.
Drawing connections from the past, Hayes hints at the possibility of the Federal Reserve employing a similar strategy to stabilize the market from inflation. Importantly, he had previously expressed optimism about Solana when its token, SOL, was valued at $60.
Hayes’ previous accurate prediction of a surge to $100 adds credibility to his current forecast. Investors are now closely monitoring Hayes’ latest insights, considering the potential repetition of history in Solana’s future price movements.
Let’s take a closer look at Solana’s recent performance. It has gained attention for outperforming other top 10 cryptocurrencies, with a notable 7.08% increase and a significant 28% weekly rise.
Currently ranked as the fifth largest cryptocurrency, with a market cap of $45 billion and a 24-hour trading volume of $2.9 billion, Solana’s surge can be attributed to advancements in its on-chain technology. Notably, Solana’s price experienced a 78% increase from December 18 to 24, 2023, surpassing the $78 mark and establishing it as a support floor on January 22.
However, the current trend suggests a potential cooldown, as indicators such as the Relative Strength Index (RSI) and Awesome Oscillator (AO) return to average levels. This could prompt a retest of the $78 support level, signaling a potential uptrend with a target of $133. This reflects a 70% gain from the $78 support level, aligning with historical patterns between November 2021 and December 2022.
Tags: Altcoins, Price Analysis